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tv   Mad Money  CNBC  September 12, 2012 11:00pm-12:00am EDT

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>> mad money you can't afford to miss it. hey, i'm cramer. my job is not just to teach but to coach you how to play this. so call me at 1-800-743-cnbc. you heard the chatter, so have i. what's that charter? that we're putting in a top right here, right now. because given the weak employment number, the slowly growing economy, and the lack of any positive growth turn in europe or china, we can't
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possibly improve on the earnings we already have. to me, it's the reason why even as we bumped up against the earlier highs again, we can't seem to take them out. we can't seem to leave them convincingly in the rear-view mirror. the dow up one point. look, i get this. i get the arguments, you know, what's known as top-down analysis at work. that top-down analysis, it's suspect. it has to do with the relation between the economy and the stock. with the assumption what really matters to the stock is whether the economies in the world accelerate or decelerate. that kind of thesis, it can make some sense. it's not fachous. if economies around the globe are slowing down, as is the case in europe or china, or showing little growth in jobs or goods or services sold, it does stand
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to reason that profits could be peaking or could have peaked already and are going down from here. so therefore sparkts should go down as well, right? some cause and effect, chicken and egg. whatever you want to call it. problem is the fact that it stands to reason doesn't mean much in the real world money management. it may seem ludicrous to you, but even if it's true that profits are peak, and i don't think they are, you can't assume that stock markets are peaking too. it doesn't work that way, people. things don't just correlate like that. it's all theoretical like that. econ 101 into stocks. let me explain. fist, as i said a zillion times, we are investing in stocks, not economies. if you were to tell me i have a security that trades one for one
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with the growth domestic product of the country, i would be all ears. second, even if you're relating the earnings component or stock ownership to our own gdp and you find the earnings trajectory wayning, how about the other component of owning so many stocks? the dividend yield. yes, it might be that profits are peaking. but tomorrow, the federal reserve will talk about what it's going to do to stimulate the economy. that means three more years of making a percent and a half on your cds, just lousy, and even less for that money fund you're hiding in. we know relatively safe stocks that yield 3%, 4%, 5%. and if you don't own them, think about it. you might be missing out on three years of that kind of
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terrific income. three years. further, there are the money management business to focus on. that is incredibly low, yet beating the s&p is why you pay an investment manager to handle your portfolio, isn't it? if you can't get that additional performance beyond the s&p 500, why not just own an index fund? and 90% of managers out there recognize their clients are asking these questions and they want answers before the end of year. you need to know, i found it almost impossible to catch up to the averages if i were behind by holding a ton of cash when so many other managers are trying
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to play catch up to the averages every day. they can't wait for a downturn in the market. they have to buy every dip to beat the averages. if the theory holds some water, there's so many managers who feel they have to chase stocks higher in order to beat the averages in order to keep the assets under management. they're playing for dinner. but there's something more important that could derail your portfolio. and this is a huge point. you should be managing a portfolio of stocks. and not simply be at the mercy of all 500 stocks and some index funds. as much as very smart people have said on air and say it over and over again that you can't manage your money so just give it up to the index funds of the world. i have seen the opposite.
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i have seen time and time again that individuals doing homework can beat index funds that by nature include good stocks with bad ones! those who argue otherwise are selling you short. they're presuming you are a doofus. i think you're smart, i know you can do this. along these lines, you can choose to own the sectors of the s&p that i think will report more robust earnings next year than this one. i'm talking about sectors about anything related to houses and mortgages, anything with technology, or non-economic and sensitive businesses that could benefit from a stronger euro and a weaker dollar than expected. and before you say, wait a second, jim, the fiscal cliff -- the fiscal cliff, the fiscal cliff is coming. oh! allow me to point out that housing's been down so long, it can bounce back from pure household formation which n't stop because of a fiscal cliff. the technology cycles trump washington spending cycles, and the soft goods sold overseas aren't going to be wrecked by spending issues. let me take a look at the largest holdings on my charitable trust to get real stock examples here. first large position, cvs, charlie, victor, sam, not cbs.
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it's a pharmacy chain. it's a noneconomic sensitive retailer taking it to the biggest competitor walgreen's because of the fight they got in with express scripps. because of those customers. next is apple. what can i say other than apple had a product announcement today and new phone cycle that i believe will drive the economy next year. and that's how meaningful the iphone is to apple's bottom line, 70%. 70% of the profits. others must believe that too as it surged ten points at the end of today's trading. third, jpmorgan, the turn of the business over here and a lack of losses over there and you better believe jamie dimon's going to cut the losses over there. i'd be hard-pressed to believe that jpm's 2013 won't be better than 2012.
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and there's boeing. okay, hey, i plead guilty. it can impact boeing's military business. but boeing has finally at long last gotten the jumbo jet, the dream liner. do you know the aerospace cycles average seven years in length and we're going into the first profitable year of the new aircraft. i will bet over a fiscal cliff, finally schlumberger. oil is in a permanently higher plain. especially the unsettled situation in the middle east. national oil companies and independents alike will be stepping up the global spending for oil exploration and development particularly offshore. no company can make more money from that cycle than schlumberger. when you examine your stocks tonight, put them through the prism of economics and ask yourself, do the companies have enough going for them that they won't be hostage if the peaking scenario does play out. here's the bottom line.
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i don't believe that the world's economies are going to wreak havoc on stocks because the linkage isn't going to be there. but you can do a lot to ensure it doesn't matter by investing in stocks which offer some immunity to the global business slowdown. let's go to dominic in california. dominic? >> caller: boo-yah, jim. >> boo-yah, chief. >> caller: i was wondering what you thought about the company ea with the iphone five today. >> you know, i heard that, and a lot of people said, listen, i've got to buy some ea. listen, ea is a function of analog hard games going into digital and you just don't make the money in digital. and therefore ea while cheap should not be bought because of the apple announcement. it should be bought because you believe the games and play them on digital and like them because the profitability is being impaired by that transition. let's go to jude. >> caller: hi, jim, how are you?
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>> real good, jude, how are you? >> caller: simple question for you, when mgm goes public, will that make them more competitive than disney and the other companies? >> depends. i'm not sure, i only know mgm resorts, i don't know the movies, what the price tag would be. i've got to tell you, this is very difficult to compare when a company is not public against companies that are public. so i can't do it. let's go to john in illinois, please, john? go ahead, john. >> caller: hi, boo-yah, cramer, how you doing? >> boo-yah, partner, what's up? >> caller: year-to-date, down about 35%, would this be a good buy considering all the controversy going on between carl icahn and navistar about new management? >> i'm torn about this, numerous red flag articles about navistar and the technology problems and balance sheet problems, but i've also made a lot of money by recommending stocks with carl icahn. what do i have to say? i say -- >> don't buy, don't buy -- >> caught in the middle, cross-fire, i step away, not going to opine navistar. too hard.
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make in new york, mike. >> caller: boo-yah, mr. cramer. >> boo-yah. >> caller: i know you suggest making gold part of your portfolio. >> indeed. >> caller: september is usually a good month to do it. >> right. >> caller: but with gold up the last month and couple of months and the expectation of easing by the fed and china and eu already sort of baked in and there's still no inflation expectations, my question is, do the recent weaknesses in the markets in china and india make this a good chance to short gold? >> no, because it's hard to find. we talked about it last night. there's not enough money out there trying to find gold. we've got a limited supply, strong demand, china in demand, and most important, if europe decides to devalue the euro, you've got a currency, and that currency is gld. gold, the profits are there. the global economy cannot hold them down forever. vote for stocks that are immune to the global economy and pick them and stick with them! "mad money" will be right back.
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coming up -- >> mobile, mobile, mobile. >> it's clearly on the mind of facebook's chief. dropping the "m" bomb 37 times in 25 minutes. but can the move be profitable? tonight, cramer sits down with the ceo of mobile ad play millenial media. to see if the shift could give its wounded stock a much needed lift. and later, healthy outlook, the promise of profitable scientific breakthroughs keeps investors coming back to biotech. and cramer's taking note of a powerful new industry growth trend that could be the next big thing. don't miss the list of potential winners just ahead. all coming up on "mad money."
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don't miss a second of "mad money." follow @jimcramer on twitter. have a question, tweet cramer, #madtweets. send an e-mail to cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. afs with more pain. more pills. triple checking hydraulics. the evening brings more pain. so, back to more pills. almost done, when... hang on. stan's doctor recommended aleve. it can keep pain away all day with fewer pills than tylenol. this is rudy. who switched to aleve. and two pills for a day free of pain. ♪ [ female announcer ] and try aleve for relief from tough headaches.
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right now we're witnessing a huge transformation the way people use the internet. and therefore in the way web-based companies do business. i'm talking about the massive migration from viewing content on desk top computers, mobile devices. i've talked about this tectonic shift before. it's one of the main reasons that facebook has been pounded so hard since it became public. advertisers won't pay as much, especially like in facebook, you don't really have a mobile strategy. now, this move to mobile is happening faster than almost anybody saw coming. it caught me somewhat by surprise and i've been talking about a smartphone revolution for years and years. tonight we want to talk to the experts, get a sense of what's going on with online advertising, and i mean millennialmedia, mm, large groups of advertisers with large groups of online publishers and take a 40% of anything they sell. they know where the place them most effectively, and have the second largest after google's and one bigger than apple's considerable network. $25 after the day of the ipo before rebounding after a solid
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quarter and then today closing above 13 months again. if anyone understands where online advertising is headed, it's these guys. we need to talk to the president, ceo, and co-founder of millennialmedia. welcome to the show. how are you? >> hi, jim. >> it's "squawk on the street" and i said, please, come on the show. i'm thrilled to have you. >> absolutely. >> desk top to mobile, how fast is this happening? and who is it good for? >> so, first of all, desk top to mobile. people are talking about a mobile monetization problem, it's a migration, because let's break this down. it is not a problem for those who are uniquely mobile. and that's what we do. and so let's talk about a few of the industry trends. >> people don't understand this and it's really important. >> absolutely. so the first thing is click through rates. the reason why you saw mark zuckerberg say mobile ads are
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performing better than online, yesterday in his first speech out since going public is that in general, click to rates on mobile are five times that of online. so that is -- that's fantastic. so that's happening very quickly. second is, from a pricing perspective, you could look at the massive amount of consumer usage coming online, take the total dollars available and mobile monetizes less, but if you look a little closer at it, what are the rates at which ads are selling for in things like video and rich media? those are commanding prices that are online, in line with online or higher than online. >> people say that let's say it's four times, you get four times a cpm, a measurement that people use on desk top versus what you would get on mobile. >> well, however, you're probably getting twice the cpm as you had in the early days of online when that usage exploded. >> okay. >> so consumers go first, advertisers come next.
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and so consumers are choosing the mobile device and advertisers want to be where consumers are, and that's why -- >> explain where you are. google has a business like yours, apple has a business like yours, is there enough room for all three of you? >> absolutely. first of all, we, on the android platform, apple doesn't play. apple plays just on -- >> people forget, that's the biggest mark. >> that's right. we put out a report yesterday talking about platforms and we're seeing android as a slightly bigger platform than ios, but we do compete incredibly well. you have to remember apple and google, their first priority is to have a great ecosystem for those operating systems and for developers to make money. and so they like having millennialmedia in the ecosystem as one of the three scale players and independent because their developers are going to get dollars, which are critical for them building their businesses. >> okay.
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what -- what are you doing in order to be able to make it so that the experience itself is good? i point this out because i often joke on air that i go to sites like when i play scramble with friends with my daughter. you know, i'm not really focused on the ads. you know, small screen, don't have great engagement, i go in and out, my desk top is just like a tv. >> again what i will say is there's one ad per page view. for an advertisers, it's a much better place to be. and the five times click rate comes from the fact you do only have one ad. while you may not click on the ad, people really are clicking at five times the rate, and that's the industry average. and so it really is more compelling than what you see online where you have 15 or 16 different ads and you really don't even see them. >> okay. zuckerberg was talking about search be where they might go. i use my mobile. i use search constantly. where do you play in the search world? >> in the search world, we don't
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play in search at all. we're a display company. we're specifically around display advertising. >> i mean, when i call up -- i go to yelp and it tells me there's a restaurant everybody likes and then i go to that restaurant site. that's not you? >> that's not yelp, they have a vertical search application, if you will. and that's one of the things that facebook sees as an opportunity, people aren't starting their experience on mobile with a search box. they're starting their experience on mobile with the apps that are on their desk top. and this, i think, could spell some challenge for google over time as vertical search like yelp, like kayak in their mobile app really drive a lot of the searches. >> okay, now, what is a great new interface like the apple device today do for you? >> well, a couple of things. we're pretty excited about today -- >> you are. >> first of all, the screen size is getting bigger. and it's getting bigger this way, not this way. still no one will say tablet computer anymore. >> right.
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>> just like the ipad was held up this way and it's its own device. more screen space allows us to double the height of the ad in that spot. so consumers can see it a little bit better, which is great. so we're excited about that. second is 4g, the 4g faster speeds allow us to deliver a richer ad to the consumer. so more video ads, more rich media ads, as well, and the third thing we're pretty excited about is this passbook piece that apple announced today is a place where you can store all of your offers. and you know, we've talked before about how i'd love to close the loop. not only show an ad, but then come back and say, how did that work? and did it really deliver return on investment for the advertiser? >> right. >> because return on investment for the advertiser is the way that advertisers care less about price, and i can be -- you know, more aggressive on pricing when we're really hitting great rois. >> right. one question for you, i know you don't control these sellers, there's a lock-up, 64 million
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shares, a lot of very good venture capitalists. will that come as a secondary? is that not up to you? people should know there is that lock-up expiring. how is that going to work? >> we can't really comment on the lock-up. frankly, we're focused on the long-term in building out our products and services. we're in a great position in the marketplace and continue to grow and really that's what we've got to focus on. >> all right. that's excellent. you know, i've taken your business and i think it's terrific. you are the independent in the group. and everyone wants an independent. mm, stock way low, you got warned about the lock-up expiration if you want to look into that. take a look into what the company does because it is on fire. stay with cramer. >> great. coming up -- healthy outlook. the promise of profitable of scientific breakthroughs. keep investors coming back to biotech. and cramer's taking note of a powerful new industry growth trend that could be the next big thing. don't miss the list of potential winners just ahead. and later --
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whether the dow soars or hits the floor, jim tries to help you stay on steady ground with "am i diversified?" all coming up on "mad money."
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en. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.
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here on "mad money," we do not want your portfolio to be hostage to the actions of governments around the world. whether we're talking about today's decision from the german high court -- ♪ hallelujah >> or tomorrow's fed statement or the constant anticipation of rate cuts in china. you need to own some stocks that go higher even if the global economy doesn't get the governmental kick in the pants so many people are looking for. that's why i want to keep your eyes on the long-term themes that can transcend all of this government nonsense that gets in the way of good stock picking. themes like the coming revolution in the way we treat hepatitis "c." that is a horrible virus that's the leading cause of liver disease and liver transplants here in the united states. even with a transplant, the hepatitis will go right on attacking the new liver. this is a huge disease. it afflicts 170 million people around the world.
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which from a human perspective is just terrible, tragic. from a business perspective, these companies are involved. hep c can be a $20 million market opportunity. it's too darn good for many drug companies to pass up. now, i've talked about the game-changing new drugs developed for hep c on the show. but in recent months, there's been a reshuffling, major changes in the competitive race. i've got to keep you up on it. that's why tonight, i want to keep this opportunity in front of you and let you know who will benefit the most from the reshuffling of the order, the changes that have gone on and who can be the winners here. there are a lot of horses in this race. there was bristol-myers, abbott labs, gilead, merck, johnson & johnson, aventis. six months ago bristol-myers was in the definite lead. but one of the patients taking their hep c drug in the clinical trial had a heart attack. and the company put the whole trial on hold first and then subsequently announced they were discontinuing the whole program and the stock got hammered, just hammered. don't get me wrong, i still think that bristol-myers is the best growth story in big pharma
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and it's got a glorious 4.1% yield, bought the stock when the stock got hit. but it's no longer the best way to play hepatitis. after bristol-myers dropped out of the race, the fda also halted testing of another drug. based on similar side effects, that was enough to knock that one off. the main ones are abbott labs, merck, j & j. those are huge drug companies and these drugs might be too small versus the overall size of the companies. vertex has something. their pipeline is too early and there's limited data. that leaves us with two more ponies, highly risky and highly speculative killion. i'm picking gilead tonight. gilead is the way. not only the last man standing, the hepatitis c drug they're developing comes from the same
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family as drugs bristol-myers were working on except without the harmful side effects. the bad news for the other two players, listen, it's fabulous for gilead. that's one small piece of the puzzle. they've built into a truly incredible biotech franchise. the number one portfolio of hiv drugs out there and their previous work has given gilead terrific insight into treating hepatitis c. it has a similar mode of action. they got into the game when they acquired a company last november for $11 billion. eye-popping, head-turning number. at the time, some people thought they overpaid. i remember joking about it with david faber, how could this have happened? how could -- there's only a couple employees here. but i think we have to trust gilead's knowledge of the space. especially since their stock, gilead has doubled from november to nearly $60 today. and it's because of this acquisition. fact is, if this deal can help gilead make a dent in helping
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cure hep c, it may look like chump change. gs 7977 is currently in phase three trials. it could launch as early as 2014 for certain hep c patients and 2015 for the rest. if all goes well -- big if in the world of biotech, it's possible this drug could do peak sales of almost $9 billion ten years from now. that could make this one of the best-selling drugs of all time. let's talk risk. gilead has a lot of things going for it with this drug. it's oral, not an injection like most of the hep c treatments on the market. it's also extremely potent while being much safer than the stuff right now. if the drugs improve, it will be a quantum leap over the existing standard of care, especially for a particular subset of patients who have genotype two and genotype three. and those drugs have incredibly
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powerful and difficult to tolerate side effects and only cure the disease half the time. with gilead's drug, they could stop injecting and take it orally, not for 24 weeks, but just for 12, and based on the trial results we've seen so far, these patients have a much higher chance of actually being cured. possibly as much as 100%, always wary of giving anyone false hope, but that's what the research is saying. hep c could be the biggest opportunity, however, there's lots of other great stuff in gilead's pipeline, hiv drugs, cardiovascular drugs, a leukemia drug in phase three development. this is a company with a lot of shots on goal. exactly what we want to see in a big biotech outfit. even if one or two drugs don't make it through the approval process, they still have a deep bench to totally mix my sports metaphors. plus the stock's selling for 13.5 times next year's earnings, inexplicable given the growth rate. gilead's actually cheap. usually these stocks would not be cheap. it's also trading at a 52-week
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high. you know me, i think you've got to wait for the pullback, but then do some buying. gilead will come down. but the key is to get in before they start rolling out the hep c data and the end of that year -- and throughout 2013. there is a time frame where it's going to be too late, but we need to see a bit of a selloff. the bottom line, we need themes that transcend the global economy. now, that bristol-myers and idenix have dropped out of the race because of safety concerns, that makes gilead the leading player in this potentially massively lucrative market. the catalysts don't come until the end of the year. you can afford to wait for gilead to pull back and i think it will before the end of the year data comes out and then it'll be too late to buy. robert in missouri, please, robert? >> caller: hi, jim. i heard you mention aetna in the past, i was wondering how humana
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stacked up against aetna. >> stephanie link, she's a regular contributor to cnbc, to "fast money" and fast at the half and i've got to tell you, she is convinced -- talked about it today in a conference, she's convinced that aetna is the cheapest health maintenance organization -- cheapest, you know, of the franchises. me, i'm a little more worried about the franchise. why? because it's linked to hiring. and linked to employment. and that's the same with humana. i am not as aggressive on aetna as she is, hence why it's not yet owned by the charitable trust. brendan in ohio, please, brendan. >> caller: a big boo-yah from the buckeye state. i'm a 13-year-old investor. first of all, i love your show. >> thank you. >> caller: i have a question about a stock in my portfolio, but due to age restrictions, i can't say it so here's my mom. >> hey, mom. how are you? >> caller: hi. >> thank you for obeying the rules. that's a strict rule on our show.
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>> caller: even though abiomed dropped 12% over the last couple of days, it just received fda clearance. would now be a good time to buy? >> yeah, you know, we had management on. i'm kind of surprised that the stock is still at 20, i saw that decline, you know, the other day was like 23, 24, and i have to tell you, i am a believer in this company, it's a long-term thesis, but i believe in it just like i believed in edwards when nobody liked edwards. i liked it at 60. i would use this decline to 20 as a place to get into abmd. on "mad money," we look for long-term investment themes. the hepatitis c market is tough. it's a widespread disease and gilead is the leader in trying to cure it. stay with cramer. coming up, the clock is ticking. call cramer at 1-800-743-cnbc. to find out how to fire away at cramer on the "lightning round." can he withstand your thunderous
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onslaught of stocks? and later, how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" all coming up on "mad money."
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it is time, it is time for the "lightning round" on cramer's "mad money." you ask me whether to buy or sell, play until this sound, and then the "lightning round" is over. are you ready skee-daddy? i'm going to start with mark in missouri. mark? >> caller: hey, jim, shooting out a boo-yah to wash u in st. louis. >> nice. >> caller: my question is on c.o.g. for my investments class. >> i've got to wait for a pullback. a lot of the marcellus assets, but it spiked because natural gas took out three, i say hold off, it was a big performer last year, i want you to wait, c.o.g. darren in south carolina. darren? >> caller: boo-yah, jim! >> boo-yah back at you. >> caller: yes, sir.
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i'm curious about something, sir, i want to find out about a short-term trade in amd. >> why, man, i have nothing to say about those guys. >> don't buy, don't buy, don't buy. >> i don't want to touch it. richie in new york. richie? >> i rarely punt to something so controversial, but tangoe, i need more homework on tangoe, i don't understand what's happening to it. let's go to sam in florida. >> caller: how are you, mr. cramer? >> i'm real good, how about you, sunshine? >> caller: big boo-yah from venice, florida. >> i love venice. what's up? >> caller: okay. i want to thank you for your advice. i'm a happy investor. >> thank you. >> caller: and i have 110 shares of ibm currently selling for over $200 a share with a basis of $80 a share.
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should i sell some of the ibm? >> you've got a double. my rules say, this is a conflict of disciplines. ibm, big position in charitable trust, but my rules say if you play with the house's money, we might have a capital gains increase. what i suggest you do is take out your capital, play with the house's money and let her rip and congratulations! let's go to bill in oklahoma, please, bill? bill? >> caller: yes. >> you're okay. >> caller: oh. am i on now? >> yeah. >> caller: all right. well boo-yah from t. boone country, my friend. >> cowboys. the only cowboys i like are t. boone's cowboys. >> caller: there you go. hey, i've got a question for you. >> yeah? >> caller: over a year ago you interviewed the ceo from frontier communication. >> yeah, maggie. >> caller: yeah.
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and you went into great depth about can frontier maintain a 75-cent dividend on a $8 to $9 stock. and she at that time was very positive and said absolutely, yes. >> i know. >> caller: very shortly after, the stock went to $6, $7, and $6, and the dividend was cut to 40 cents. >> yep. >> caller: now, i'm sure, feel sure that the short sellers and the profit from the company caused some of this. >> no. no, no. the business fell off, sir. the business fell off. and that was -- i don't want to speak for any ceo, but she was too confident in the business. and i don't like the stock because of that. and i'm not going to recommend buying frontier. i'm just not. let's go to verne in colorado. verne? >> caller: hi, jim. big boo-yah from colorado. >> mile high boo-yah back at
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you. >> caller: tell you what i'm interested in, jim. i'd like your opinion of main street capital, symbol is m.a.i.n. >> this is another kind of bank, really on fire, i do like the business, it's debt and equity financing to customers and there's a lot of room for that, and i think the stock is a good one. i need to go to sue in connecticut. sue. >> caller: hey, jim, what's your opinion of ec? >> pretty good. pretty good international oil company. i like columbia up ringing the bell the other day. i do prefer certain domestic oil companies, but i'm going to bless this one. i think it's better than total, better than royal dutch and, you know, frankly one of the best international oil companies there is. and that, ladies and gentlemen, is the conclusion of the "lightning round." the "lightning round" is sponsored by td ameritrade.
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now, remember, i started tonight's show by telling you home gamers that as long as you do plenty of homework, you're smart and wise enough to manage your own portfolios versus giving up your cash to money
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managers. i'm confident you'll do better when you examine your stocks tonight and put them through the prism of economics i talked about. i want you to also make sure your holdings are diversified by sector or strategy as an extra layer of protection for whatever good or bad may lie ahead. and that's why every week we play "am i diversified?" this is my tenth year of playing. this is where you call me, tell me your top five holdings and i tell you if your portfolio is diversified enough. you know i've been going for tweets @jimcramer. this one is from ernturtle. he writes, #madtweet, long time viewer, first-time tweeter. dividends/diversified. am i diversified? apple, thank you for your help. let's go to work. ern turtle. okay. soft drink company, beverage
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company, mcdonald's is a retailer of food, apple is the world's largest technology and entertainment company. kraft foods is food but it's a food seller in the retail store, so i'm not going to be able to say they're the same and amazon, of course, is the great book seller that is now the great retailer. started as a book seller. we've got a beverage company, we have a restaurant chain, technology play, food company, and let's just call it another technology play now. and i'm going to bless that. it's diversified. and even though some may say coca-cola and kraft are too much alike, i don't think so. bud in wisconsin. >> caller: boo-yah to ya. >> nice. >> caller: i want to play am i diversified. >> you're on. let's go. >> caller: okay. first pick is wellpoint health networks. wlp. >> got it. >> caller: next one is my fave and your fave, mcdonald's. >> oh, yeah.
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you got that right. >> caller: and the next one is speculation, mgic ticker symbol mpg. >> okay. >> caller: next one is joy global, joy. and last but not least is my utility, exelon. exc. >> boy, this last one, wellpoint, you know, fabulously run, i like it, but it is fabulously run. mcdonald's, covered that restaurant, joy global, machinery, you identify as the spec because i don't like it. it's a spec on the mortgage insurance business. and exelon, goes down almost every day and i don't get it because i don't think it's that bad. you've got a restaurant, machinery company, a spec, and a health management organization, i'm going to say bingo to that. let's go to eddie in missouri. eddie?
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>> caller: boo-yah, jim, from the home of the world champions, st. louis cardinals. >> well, boo-yah, welcome. what do you got? >> caller: public storage, csa, monsanto, m.o.n., walmart, verizon, vz, and bank of america bac. >> spirited missouri show me call, which i will. investment trust, monsanto is the seed company, walmart is the gigantic retailer, verizon is the best phone company, waffles between at&t and verizon, bank of america, we've got a telco, restaurant, real estate investment trust, and a biotech/seed company and i say bingo. i appreciate it. that, ladies and gentlemen, is another conclusion of the game "am i diversified?"
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i know the name of eight princesses. i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there.
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how much oil and gas do we have in this country for heavens sake? well, that's my take away from the monster deal this morning with chesapeake selling a portion of the permian basin assets for $6.9 billion to royal dutch and chevron to continue to grow chesapeake. i think these assets an ancient but productive field are a great one. said it this morning, chesapeake can get away with selling them because it is so asset rich. in fact, chesapeake plans to sell $17 billion to $19 billion
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worth of assets and still expects to increase production in reserves by approximately 20% through 2012 and 2013. pretty amazing. how is that even possible? you think the numbers wouldn't add up. chesapeake can do it for the reason there's so much oil and gas in places in this country. the marcellus in pennsylvania, the eagle ford in texas. the bakken shale, the middle east is erupting, and once again, our lack of domestic oil policy remains the biggest threat to the national security. these remarkable finds made by chesapeake but also by others have made it possible for us to become energy self-sufficient in north america. that's important. not just the united states. if only washington would recognize the imperative using our plentiful natural gas of which chesapeake is the second largest producer as a surface fuel. that's the issue, surface fuel.
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because of their bountiful oil supplies if we were simply to harness the energy the continental chesapeake eog oil and gas, range, so many others have found in the last three years? all washington has to do is announce it supports natural gas as a fuel of service vehicles and it'll switch the fleets including the post offices trucks to nat gas. that would cause the big oil companies to convert their gas stations to include liquified natural gas to compressed natural gas which would allow us to cut back on our oil imports for trucks. they consume about 25% of what we bring into this country. there are multiple reasons, cheaper fuel costs for americans. but ladies and gentlemen, it's the national security angle that matters more than any other. as we see what's going on in the middle east right now, and neither presidential candidate seems to realize we can wean ourselves off the hammer lock. and when you consider the innovations, you know this north
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american energy self-sufficiency is within our reach. the only question is, do we have the political will? do we have the will to do so? the horrendous acts in libya tell us that it must occur if we are ever going to be strong enough to face off against the enemy that we subsidize every day with our billions of dollars in needless energy imports. stay with cramer. even in hard times, don't get mad, get "mad money." bob...
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oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha!
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like the elephant on my chest... well, i had all the classic symptoms... he thought he was having a heart attack. she said, "take an aspirin, we need to go to the hospital."
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i'm on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. i'm very grateful to be alive. aspirin really made a difference. the economy needs manufacturing. machines, tools, people making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪ tonight, "american greed," the fugitives, a female bank robber convinces tellers to hand over the money. she was caught but escaped. intrigued? watch "american greed: fugitives" tonight with me because i will be watching. apple, stop trying to trade it,

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